Binance liquidity swap is one of the pools with the highest trading volume in the cryptocurrency markets globally. The pool was created in late 2020, and the platform has risen to one of the biggest globally.
Binance liquidity swapping platforms offer crypto exchange users the ability to trade and swap their tokens. The clients and users can change their tokens from one cryptocurrency to another as they are both under Defi (Decentralized Finance).
Binance Adds SHIB, DOGE, LINK, and LTC to its Liquid Swap
Via a blog post and official release from the crypto exchange platform, four different pools have been added to the Binance liquid swap. The four new liquidity pools are tokens that have been making waves recently in the cryptocurrency markets. They include;
- DogeCoin/BUSD (DOGE)
- Shiba Inu/BUSD (SHIB)
- Chainlink/BUSD (LINK)
- Litecoin/BUSD (LTC)
The Binance swap pool is a smart contract-based pool that users can swap from any token listed to another. Also, they can purchase/keep their cryptocurrencies in the liquid swap pool for long and short-term duration. After the deposition, they will be entitled to earn rewards for providing liquidities.
As of January 2021, the major coins in the pool were USDT and DAI pairs. However, Binance later announced plans to expand the liquid collection. The bull run in the cryptocurrency marketplace in 2021 triggered the expansion. This run skyrocketed all coin prices in the markets.
DOGE/USDT and DOGE/BTC were added to the liquid swap pool following the significant exposure of the meme token in the market. After three months, SHIB/USDT was also added to the collection.
Binance Liquidity Swap Pool, A Likely Threat to Uniswap
Binance liquid swap was launched on the centralized exchange company/platform in October 2020. The liquid swap platform was launched on an Automated Market Maker (AMM).
After the launch of the liquid swap pool, trading volume was low until the rally in the crypto markets in 2021, when the exchange platform decided to add more tokens. According to experts, the launch was made to stop the monopolization of the liquid pool swap by Uniswap in the cryptocurrency markets.
Uniswap is a high-profiled cryptocurrency decentralized exchange platform that was created in 2018, and runs on the Ethereum blockchain. Binance move in 2018 was to inhibit/compete with the popularity of Uniswap.
Most times, tokens and cryptocurrency traders are the most common users of the swapping platform. Traders pay less for all transactions and trade on the liquid swap pool than decentralized exchanges. Frequent users who deposit liquidities are also rewarded in BNB.
The Ethereum-based decentralized platform, Uniswap, is still the biggest swapping decentralized platform, with over $1 trillion in trading volume. However, there are predictions from experts that Binance poses a threat to the platform.